EG7 PAYS ADDITIONAL PURCHASE REMUNERATION CORRESPONDING TO APPROXIMATELY CAD 9 MILLION IN CASH AND SHARES FOR THE ACQUISITION OF BIG BLUE BUBBLE INC.
On 25 November 2020, Enad Global 7 AB (publ) ("EG7" or the "Company") announced the completion of the acquisition of 100 percent of the shares in Big Blue Bubble Inc. ("Big Blue Bubble") for a purchase price of CAD 16 million, plus an additional purchase consideration amounting to a maximum of CAD 60 million, on a cash and debt-free basis (the "Transaction"). EG7 has today paid an additional purchase price (earn-out) for the acquisition of Big Blue Bubble corresponding to approximately CAD 9 million through payment of approximately CAD 6 million in cash and payment of approximately CAD 3 million through the issuance of 1,026,538 shares in EG7. Payment in shares will be made through a directed issue to the sellers of Big Blue Bubble and will be set at a subscription price of SEK 22.09 per share, which corresponds to the average volume-weighted share price (VWAP) on the Nasdaq First North Growth Market during the preceding 20 trading days.
The additional purchase price for the acquisition of Big Blue Bubble was conditional on certain financial covenants being achieved, such as Big Blue Bubble generating a profit of up to 3x EBIT during the financial years 2021 and 2020. A maximum of one third of the additional purchase price could be paid in shares according to the share purchase agreement.
The directed share issue to the sellers in Big Blue Bubble will result in a change in the number of outstanding shares and votes in the Company with 1,026,538 shares, from 87,576,988 shares, to 88,603,526 shares and a change in the share capital by SEK 41,061.52, from SEK 3,503,079.52, to SEK 3,544,141.04.
FOR MORE INFORMATION, PLEASE CONTACT:
Ji Ham, Acting CEO
Phone: +46 70 065 07 53
Fredrik Rüdén, Deputy CEO and CFO
Phone: +46 733 117 262
EG7 is a group of companies within the gaming industry that develops, markets, publishes and distributes PC, console and mobile games to the global gaming market. The company employs 470+ game developers and develops its own original IPs, as well as acts as consultants to other publishers around the world through its game development divisions Daybreak Games, Piranha Games, Toadman Studios, Big Blue Bubble and Antimatter Games. In addition, the group's marketing department Petrol has contributed to the release of 1,500+ titles, of which many are world famous brands such as Call of Duty, Destiny, Dark Souls and Rage. The group's publishing and distribution departments Innova and Sold Out hold expertise in both physical and digital publishing. EG7 is headquartered in Stockholm with approximately 880 employees in 16 offices worldwide.
Nasdaq First North Growth Market Ticker Symbol: EG7
Certified Adviser: Eminova Fondkommission AB, Phone: +46 8 684 211 00
The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such restrictions. The recipient of this press release is responsible for using this press release, and the information contained herein, in accordance with applicable rules in each jurisdiction. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in EG7 in any jurisdiction, neither from EG7 nor from someone else.